Mutual Fund assets up 35% in fiscal 2024 (2024)

FAQs

Which funds will invest 65% to 80% of total assets in equities and 20% to 35% in debt instruments? ›

Analysts are projecting S&P 500 earnings growth will accelerate to 9.7% in the second quarter and S&P 500 companies will report an impressive 10.8% earnings growth for the full calendar year in 2024.

The expense ratio is how much you pay a mutual fund or ETF per year, expressed as a percent of your investments. So, if you have $5,000 invested in an ETF with an expense ratio of . 04%, you'll pay the fund $2 annually. An expense ratio is determined by dividing a fund's operating expenses by its net assets.

Systematic Withdrawal Plan (SWP): Set up an SWP to automatically redeem your mutual fund units regularly. By keeping withdrawals below Rs. 1 lakh per year, you may avoid LTCG tax altogether.

Just as with individual securities, when you sell shares of a mutual fund or ETF (exchange-traded fund) for a profit, you'll owe taxes on that "realized gain." But you may also owe taxes if the fund realizes a gain by selling a security for more than the original purchase price—even if you haven't sold any shares.

To the find the percent increase, first subtract the initial value from the final value. Then take the difference and divide it by the initial value. Finally, multiply this number by 100% to convert the number to a percentage. This final result will represent the percent increase between the two values.

Alternatively, another formula can be used, where CAGR = (current value/initial value)1/n-1 where n is the number of years. Using elaborate formulae can be time-consuming and laborious and it is far easier to use a simple online mutual fund calculator to compute your returns.

The Assets Growth ratio is calculated as (the latest balance sheet Total Assets – Total Assets 12 months ago) / Total Assets 12 months ago. It is shown as a percentage.

Will investments recover in 2024? ›

SR: Emerging markets continue to look attractive. Quality as an investment factor is expected to perform well in the current economic environment. Specifically, financials in Europe appear cheap relative to their US counterparts. HW: UK equities are well placed to perform strongly in 2024.

We continue to foresee below-trend growth in 2024 but have increased our growth forecast from about 1% to a range of 1.25%–1.5%. Risks skew to the downside amid the continued bite from restrictive monetary policy.

Although a ratio result that is considered indicative of a "healthy" company varies by industry, generally speaking, a ratio result of less than 0.5 is considered good.

A "good" expense ratio will be determined by a variety of factors, such as if the fund is actively managed or passively managed. Generally, for an actively managed fund, good expense ratios range between 0.5% and 0.75%. Anything above 1.5% is considered high.

There is no ideal asset/equity ratio value but it is valuable in comparing to similar businesses. A relatively high ratio (indicating lots of assets and very little equity) may indicate the company has taken on substantial debt merely to remain its business.

Thematic or sectoral funds - These funds invest at least 80% investment in stocks of a particular sector/ theme like international stocks, emerging markets, BFSI, IT, or pharmaceuticals. These funds carry higher risk due to their narrow focus on a particular sector or theme.

80/20 Portfolio Basics

With an 80/20 portfolio, the risk factor increases since you have more money going into stocks. The flip side of that, however, is that you may have more room to earn higher returns.

Mid Cap Fund:

Such funds invest at least 65% of its net assets in equity shares and related instruments of mid-cap companies, comprising of companies at rank 101 to 250 in terms of full market capitalisation.

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, Fixed Income asset classes with a target allocation of 80% equities and 20% Fixed Income. Target allocations can vary +/-5%.